BP, Exxon Mobil (XOM) and ConocoPhillips (COP) are discussing a $40B project to export natural...


BP, Exxon Mobil (XOM) and ConocoPhillips (COP) are discussing a $40B project to export natural gas from Alaska to Asia, sources tell the FT. However, the companies first need to reach an agreement with Alaska's government regarding a North Slope oil and gas field; the government claims oil giants have been too slow to develop the field, and has sought to revoke their lease.
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Comments (15)
  • TakeFive
    , contributor
    Comments (5130) | Send Message
     
    Call Todd P. ... he knows his way around the O&G business. On the other hand it might just be easier to have Sarah and Barack meet over lunch.
    21 Mar 2012, 04:36 PM Reply Like
  • HoeTamer
    , contributor
    Comments (186) | Send Message
     
    The government? Why don't you put a name on the problem? The companies are trying to develop an energy field and again the "government" is trying to thwart them. C'mon Alaska get out of the way, quit screwing with the job producers. If you have a 5 year lease to develop a sector of land, why can't they wait till year four? The "government" wanted their cut, three years ago.
    21 Mar 2012, 04:40 PM Reply Like
  • rwanders
    , contributor
    Comment (1) | Send Message
     
    Exxon and the other lease holders sat on pt thompson leases for over 30 years constantly promising development 'next year'. sarah and successor sued to retake leaes--only then did they finally drill a few wells and prove up the huge oil and gas reserves there. Also; to the ones assuming pipeline across bering strait---no such line anticipated---it would go to valdez, be liquified and sold to asia---read; china, etc.via lng tankers. I have lived and worked in ak oil & gas for 43 years
    5 Apr 2012, 10:57 AM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Call Palin.. She can see Russia and then tell them to make a left.
    21 Mar 2012, 06:44 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (8640) | Send Message
     
    A $40B pipeline sure would eat alot of the profits.
    21 Mar 2012, 07:07 PM Reply Like
  • JayPar
    , contributor
    Comments (196) | Send Message
     
    I guess drilling Alaska isn't the answer for energy independence, since it can just as well be exported to Asia at market price. Then again, anyone who doesn't buy the rhetoric already understood this.
    21 Mar 2012, 09:27 PM Reply Like
  • HoeTamer
    , contributor
    Comments (186) | Send Message
     
    JayPar, this is a natural gas export terminal. Nat gas won't be exported to Asia for a long while. It won't make any difference in the US as the price of nat gas will still be dirt cheap for years.
    21 Mar 2012, 09:33 PM Reply Like
  • Ross Snyder
    , contributor
    Comments (21) | Send Message
     
    Wow. Some thoughts:

     

    (1) The reason the oil companies have been slow to drill for natural gas is because the deal Sarah Palin's government signed with Big Oil was too heavily taxed. Big Oil is waiting for a more favorable Republican government there. (Somebody find that old Harper's or Atlantic article on Palin ...)

     

    (2) What good is it to export to Russia? They only want to control supply and corner their own markets, even if it means killing the poor in Poland.

     

    (3) Global warming - storms and sea ice should be more intense in coming years/decades around the former land bridge (presumably where the pipeline would cross??). Maybe the hope is that with the melting of the polar ice cap, sea ice would not be as thick, and the risk of ice scouring the ocean floor and rupturing a pipeline would be diminished??

     

    (4) Instead of fracking the crap out of the environment and exporting to Russia, wouldn't it make more sense to somehow capture the vanishing natural gas from the melting permafrost? There are thousands of lakes where you could literally burn off your eyebrows if you lit a match while boating ... Do we have this technology now??
    21 Mar 2012, 09:39 PM Reply Like
  • yaga
    , contributor
    Comments (130) | Send Message
     
    Lets let the government revoke the XOM and BP licenses if they are too slow. Then we will see who is at fault. After all, four years and these two giants with lots of clout on capitol hill can't lobby effectively, or get the public behind them. Perhaps STO the Norwegian giant can do a better job. After all the name of the game is capitalism. Lets have a show down and settle once and for all whether the government is in the way, or the giants are incompetent or impotent. Perhaps Viagra is the solution for BP and XOM. Too bad PFE has lost its patent on Viagra. It is now available on the Veterans Administration formulary. This is the real shame of an inept government vs some inpotent big oils. What a shame. Bring back
    Rutherford B Hayes or better still John Rockerfeller Sr. Yaga thinks the real solution to the oil problem what Boone Pickens has been saying for years,"what about gas"?
    21 Mar 2012, 09:43 PM Reply Like
  • yaga
    , contributor
    Comments (130) | Send Message
     
    Yaga is a long time investor and very private personal advisor for over 60 years. Disclosure ....long in the game. Net worth approaching 8 figures. Yes, I remember oil at $1.00 a barrel, gas at the pump at 22 cents a gallon and the 5 cent cigar, and I'm still kicking a.. You youngling at the game haven't seen how the game is played out.Wait around for a while, don't be impatient.
    21 Mar 2012, 09:51 PM Reply Like
  • DaLatin
    , contributor
    Comments (1522) | Send Message
     
    Ahhh the youth is wasted on the young ! I bought gas a little less than 22 cents ( 11 to 13 cents) an a few times a year if you bought at least 10 gallons you received an 8 pack of Coca Cola or a case of cigarettes..

     

    And, patience.... I would love to see the youngsters learn that. Everything is yesterday..........
    22 Mar 2012, 03:57 AM Reply Like
  • sloemoe
    , contributor
    Comments (42) | Send Message
     
    THe Government and Big Oil going to sent our natural resources to asia.I guess that will HELP US WITH ENERGY INDEPENDENCE REAL SOON. Once again a message to americans that our well being is really not that important.Makes you sick.I would suggest that BP,ConocoPhilips and Exxon must pay really big bucks for the drilling rights and hire only american workers for this project.
    21 Mar 2012, 10:26 PM Reply Like
  • HoeTamer
    , contributor
    Comments (186) | Send Message
     
    After more reading on the Alaska pipeline, it doesn't seem out of line for the state to light a fire under these companies. This development plan was was submitted in 1977, but now with the glut of nat gas an export hub sure makes a lot of sense.
    22 Mar 2012, 10:44 AM Reply Like
  • LKofEnglish
    , contributor
    Comments (4385) | Send Message
     
    this would be one hell of a project that's for sure. Don't count out East Asian engineering prowess in pulling it off either. As I recall Sarah Palin wanted the natural gas to go through Canada to the Lower 48 as well. Of course she's in Arizona now so she doesn't have to fight for both Alaska's interests and the USA's...so all the rest of you can celebrate having your nat gas go Westward instead!
    22 Mar 2012, 12:38 PM Reply Like
  • Tamra Adnan
    , contributor
    Comment (1) | Send Message
     
    total newbie- learning the ropes (and writing a paper about this very topic).. How exactly will this pipeline affect trading? Is it a god thing for investors...or not so good? especially following the Gulf disaster?
    4 Apr 2012, 02:17 PM Reply Like
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